{"id":24469,"date":"2019-01-17T09:02:58","date_gmt":"2019-01-17T09:02:58","guid":{"rendered":"http:\/\/66e8f197-c542-46b4-9e69-bb051888a8e6"},"modified":"2019-01-17T09:02:58","modified_gmt":"2019-01-17T09:02:58","slug":"zix-acquires-appriver-in-275-million-deal","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/zix-acquires-appriver-in-275-million-deal\/","title":{"rendered":"Zix acquires AppRiver in $275 million deal"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/zdnet2.cbsistatic.com\/hub\/i\/r\/2019\/01\/17\/7ebaabd0-4f5f-47bd-9002-c0a8cc3bf03d\/thumbnail\/770x578\/46ae1b39f96d6a4635b256977a6a3951\/screenshot-2019-01-17-at-08-12-33.png\" class=\"ff-og-image-inserted\"\/><\/div>\n<p>Zix has announced its intention to purchase cloud cybersecurity firm AppRiver in a deal worth $275 million.<\/p>\n<p>This week, the email security firm said an agreement has been reached to purchase AppRiver in an all-cash transaction.<\/p>\n<p>Launched in 2002, Florida-based <a href=\"https:\/\/uk.appriver.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">AppRiver<\/a> is a private company which provides subscription-based email and Internet security services. These include spam and virus filter systems, email encryption, secure archiving, and secure Microsoft Exchange hosting.<\/p>\n<div class=\"relatedContent alignRight\">\n<h3 class=\"heading\"><span class=\"int\">More security news<\/span><\/h3>\n<\/div>\n<p>The company was one of Microsoft&#8217;s original syndication partners for Office 365 and serves over 60,000 companies worldwide.<\/p>\n<p><a href=\"http:\/\/www.zixcorp.com\" target=\"_blank\" rel=\"noopener noreferrer\">Zix<\/a> expects the Annual Recurring Revenue (ARR) of the merged company to be roughly $180 million at closing, although the goal is to reach $200 million to $207 million by the end of 2019.<\/p>\n<p>In addition, the email security provider says that AppRiver&#8217;s portfolio is expected to &#8220;more than double&#8221; Zix&#8217;s overall revenue, with organic growth pegged at between 11 and 15 percent year-over-year.<\/p>\n<p>While the firm has not revealed how, in the first 12 to 18 months following the closure of the acquisition, approximately $8 million in cost savings are expected.<\/p>\n<section class=\"sharethrough-top\" data-component=\"medusaContentRecommendation\" data-medusa-content-recommendation-options=\"{&quot;promo&quot;:&quot;promo_ZD_recommendation_sharethrough_top_in_article_desktop&quot;,&quot;spot&quot;:&quot;dfp-in-article&quot;}\">\n<\/section>\n<p><strong>See also:\u00a0<\/strong><a href=\"https:\/\/www.zdnet.com\/article\/voipo-database-exposed-millions-of-call-and-sms-logs-system-data\/\" target=\"_blank\">VOIPO database exposed millions of call and SMS logs, system data<\/a><\/p>\n<p>In order to fund the deal, SunTrust Bank and KeyBanc Capital Markets have committed to lending Zix $175 million alongside opening a $25 million revolving credit facility. The secured loan will be used to partially fund the buyout and the credit line is going to be available for &#8220;general corporate purposes,&#8221; according to Zix.<\/p>\n<p>Zix has also agreed to issue $65 million in Series A preferred stock as part of an agreement with True Wind Capital, which will make a $100 million convertible preferred equity investment following the closure of the AppRiver acquisition.<\/p>\n<p><strong>TechRepublic:\u00a0<\/strong><a href=\"https:\/\/www.techrepublic.com\/article\/top-10-app-vulnerabilities-unpatched-plugins-and-extensions-dominate\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top 10 app vulnerabilities: Unpatched plugins and extensions dominate<\/a><\/p>\n<p>True Wind Capital founding partner James Greene and Principal Brandon Van Buren will be joining Zix&#8217;s board of directors.<\/p>\n<p>&#8220;Over the past two years, Zix has been successfully executing on its strategy of becoming a leading provider of email security for compliance,&#8221; said David Wagner, Zix CEO. &#8220;The acquisition helps us expand our customer base, enhance our advanced threat protection position, and accelerate our high-velocity go-to-market strategy through AppRiver&#8217;s numerous and longstanding channel partnerships.&#8221;<\/p>\n<p><strong>CNET:\u00a0<\/strong><a href=\"https:\/\/www.cnet.com\/news\/airbnb-apologizes-to-guest-for-how-it-handled-undisclosed-security-camera\/\" target=\"_blank\" rel=\"noopener noreferrer\">Airbnb apologizes to guest for how it handled undisclosed security camera<\/a><\/p>\n<p>This month, a number of other cloud security-based acquisitions have been announced. <a href=\"https:\/\/www.zdnet.com\/article\/akamai-acquires-janrain-to-strengthen-identity-access-controls\">Akamai purchased Janrain<\/a>, a startup which specializes in access control security and bot protection for an undisclosed amount, and distributed denial-of-service (DDoS) protections provider <a href=\"https:\/\/www.zdnet.com\/article\/radware-acquires-shieldsquare-in-cloud-security-push\/\" target=\"_blank\">Radware said<\/a> the company was planning to purchase ShieldSquare, a bot management services firm.\u00a0<\/p>\n<h3>Previous and related coverage<\/h3>\n<p>READ MORE <a href=\"https:\/\/www.zdnet.com\/article\/zix-acquires-appriver-in-275-million-deal\/#ftag=RSSbaffb68\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems like 2019 is the year to purchase cloud security companies.<br \/>\nREAD MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":24470,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[62],"tags":[],"class_list":["post-24469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-zdnet-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO 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